Venezuela and the United States have reached an agreement allowing the export of up to $2 billion worth of Venezuelan crude oil to the US, President Donald Trump said on Tuesday, marking a major development that could redirect oil supplies away from China while easing pressure on Venezuela’s oil sector.
Trump described the deal as a significant negotiation that would help Venezuela avoid deeper oil production cuts while meeting Washington’s demand for greater access by US companies to the country’s vast energy resources. The agreement comes amid heightened tensions following Washington’s recent blockade on Venezuelan oil exports.
According to Trump, Venezuela will “turn over” between 30 million and 50 million barrels of sanctioned oil currently stranded in tankers and storage facilities. The oil will be sold at market prices, with proceeds controlled by the US government.
“This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States,” Trump said in a social media post.
US Energy Secretary Chris Wright has been tasked with executing the deal, which will involve transferring crude directly from ships to US ports.
The export blockade, imposed in mid-December, was part of escalating US pressure on the government of President Nicolás Maduro, whose capture by US forces over the weekend has sparked sharp reactions in Caracas. Venezuelan officials have labeled the action a kidnapping and accused Washington of attempting to seize control of the country’s oil reserves.
Sources familiar with the matter told Reuters that initial supplies may be redirected from shipments originally destined for China, Venezuela’s largest oil buyer over the past decade, especially since US sanctions tightened in 2020.
“Trump wants this to happen early so he can say it is a big win,” an oil industry source said.
Venezuelan officials and state oil company PDVSA declined to comment.
Chevron Maintains Control Over Venezuelan Oil Flows
Under current US authorizations, Chevron remains the sole company exporting Venezuelan crude to the US without interruption. The oil major has been shipping between 100,000 and 150,000 barrels per day in recent weeks.
Following Trump’s announcement, US crude prices fell more than 1.5%, reflecting expectations of increased Venezuelan supply. Market reaction was also visible in the US Gulf Coast, where differentials for heavy crude grades slipped by about 50 cents per barrel.
Venezuela’s flagship Merey crude has recently traded at roughly $22 per barrel below Brent, valuing the agreement at up to $1.9 billion.
However, it remains unclear whether Venezuela will have access to the proceeds. Sanctions have frozen PDVSA’s accounts, excluded it from the global financial system, and blocked dollar-based transactions.
Talks Include Auctions and Strategic Reserve Use
US and Venezuelan officials have discussed potential mechanisms for oil sales, including auctions allowing US buyers to bid for cargoes and issuing licenses to PDVSA partners. Past licenses have enabled companies such as Chevron, Reliance Industries, CNPC, Eni, and Repsol to access Venezuelan crude.
Some of these companies have reportedly begun preparations to resume receiving Venezuelan oil cargoes.
Discussions have also touched on the possibility of using Venezuelan oil to replenish the US Strategic Petroleum Reserve, though Trump did not confirm this option.
US Interior Secretary Doug Burgum said increased oil flows would be “great news” for US refineries, jobs, and gasoline prices, while offering Venezuela an opportunity to rebuild its economy with American investment and technology.
Before sanctions were imposed, US Gulf Coast refineries were importing up to 500,000 barrels per day of Venezuelan heavy crude. PDVSA has already reduced production due to storage constraints, and further cuts could follow without sustained export channels, sources warned.